Call to governments all across the world to spruce their efforts to manage climate change was issued by a group of investors who together manage assets worth $32 trillion.
There remains a wide gap between the measures to tackle climate change that the governments have promised and the actual measures that are needed to achieve the goals that were set at the Paris climate agreement, said a group of 415 investors.
Financial heavyweights including HSBC, Nomura Asset Management and UBS Asset Management have endorsed the statement that was issued by the Institutional Investors Group on Climate Change.
This effort by the group is being considered to be the single largest policy intervention from investors on climate change. This group is important because the assets they it collectively control is twice the value of the Chinese economy.
“Much more needs to be done by governments to accelerate the low carbon transition and to improve the resilience of our economy, society and the financial system to climate risks,” the group said in a statement.
This statement is hoped to reach out to world leaders who are scheduled to get together to discuss issues of climate change in Katowice, Poland, for an annual summit.
The suggestions from the investor group include urging world governments to slowly phase out coal as a source of electric power, reduction and ultimately lifting of all subsidies on fossil fuel subsidies along with putting a price for carbon emissions. Companies were also urged to offer more information of climate risks associated with their business activities.
The language supporting landmark climate report was allegedly weakened by the US and was helped by Russia, Saudi Arabia and Kuwait.
Arguing in favour of taking measures to tackle climate change, the group claimed that there can be big gains by such activities including new jobs and investment.
“The countries and companies that lead in implementing the Paris Agreement and enacting strong climate and low carbon energy policies will see significant economic benefits,” it said.
In a recent trend, companies are being pushed by global investors to becoming more active and undertaking significant and meaningful measures to combat climate change.
A shareholder resolution that demands setting of more hard targets for cutting carbon emissions be taken up by BP, the group of investors announced. The next on its target list are ExxonMobil and Chevron which would also be pushed to take similar measures.
“We keep making the same fair ask … we request these companies to align their targets with the Paris Climate Agreement,” said Mark van Baal, the group’s leader.
The resolution has been received by it and it would consider it carefully, BP said.
“With Shell, we’ve seen how effective climate resolutions are,” said van Baal.
(Adapted from CNN.com)